Marshall Islands Launches First Blockchain UBI on Stellar with USDM1
The Marshall Islands today rolled out USDM1 on the Stellar network, a sovereign-backed stablecoin supported by U.S. Treasuries and designed to fund a universal basic income pilot in underserved communities. Authorities describe USDM1 as a new instrument for digital public finance, using Stellar’s low-cost rails and XLM for on-chain settlement and distribution. The program aims to test direct digital transfers, faster aid delivery, and transparent reserve backing through tokenized holdings.
If successful, the initiative could become a model for small states exploring programmable social spending and reserve-backed digital currencies. Observers say it improves financial inclusion and traceability but will draw scrutiny on custody, regulatory oversight, and the mechanics of Treasury backing. Market participants will watch XLM usage and liquidity as the pilot progresses and as questions around governance and convertibility are resolved.